Weekly Roundup: The Home Insurance Crisis is Driving Foreclosures, Lowering Home Values, and Increasing Costs
FOR IMMEDIATE RELEASE
May 23, 2025
Contact: contact@insurancefairnessproject.com
Weekly Roundup: The Home Insurance Crisis is Driving Foreclosures, Lowering Home Values, and Increasing Costs
Each week, the Insurance Fairness Project highlights the latest developments in the national climate-driven property insurance crisis.
A wave of stories this week highlights the impact that the climate-driven home insurance crisis is having on housing markets: increasing housing costs, driving foreclosure risk, and decreasing home values.
Florida real estate prices are in decline again — and this time, real estate experts say, the costs of living with climate change may deepen the down phase of the usual boom-and-bust cycle. Sky-high insurance rates and condo fees, stemming in part from extreme weather, are weighing more heavily against the benefits of year-round sunshine and zero income tax, complicating an already tough situation with borrowing costs.
Chicago Sun Times: Homeowners pay price for insurance industry’s reluctance to address climate change, consumer groups say
NOLA: As Louisianans face staggering home insurance costs, no immediate relief in sight
Boise State Public Radio: A home insurance crisis is building in the Mountain West. State leaders are struggling to respond
Outlets including CNN covered a new report from climate risk financial modeling firm First Street which found that climate-driven foreclosures could result in $1.2 billion in lender losses this year. As damage from extreme weather increases, this figure is projected to reach up to $5.4 billion in losses per year by 2035:
“This growing share of foreclosure losses is largely driven by the escalating insurance crisis and the increasing frequency and severity of flooding anticipated in the next decade,” the report states.
Heightened Risk Following Federal Cuts
Meanwhile, cuts to federal agencies including the National Weather Service, NOAA, and FEMA highlight the heightened vulnerability of communities as we approach peak hurricane season.
CapitalB: Sirens Failed. FEMA Didn’t Show Up. Now Black St. Louis Recovers from Deadly Tornadoes Alone
(Another) California Rate Hike
This week, State Farm requested another rate hike for California policyholders—just one week after Commissioner Lara granted its interim rate increase.
Our statement: “We can't rate hike our way out of the insurance crisis. The absurdity and outrageousness of State Farm asking for another hike, just one week after getting one, is proof that the companies will keep coming back for more and more,” said TJ Helmstetter, spokesperson for the Insurance Fairness Project. “The reality is that this crisis is driven by climate change and a failure of leadership at every level. We can’t expect it to be solved on the backs of ordinary Americans who are just trying to pay their mortgage or their rent. It’s time for the federal and state governments to take this crisis seriously and offer real solutions to protect people.
Resources
Insurance Fairness Project and Data For Progress: Polling – Voters Want Their Government to Address the Property Insurance Crisis
78% of voters are concerned about rising property insurance prices, with 40% saying they are “very concerned”
Public Citizen and the Revolving Door Project: Mapping the Home Insurance Crisis
New interactive maps reveal the widespread nature of the U.S. home insurance crisis with seven metrics of availability and affordability.
Consumer Federation of America: Overburdened
The Dramatic Increase in Homeowners Insurance Premiums and its Impacts on American Homeowners
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
